Debt Relief question...

[Water Romper]

My brother in law is ass backwards financially and was asking me about debt relief services vs bankruptcy. :jawdrop: Since I have not had to use either of these services I am not qualified to give him a good answer.
I poked around the net and there are a million different companies tooting their own horn..
Anybody know anyone that has done this before? By the way, it’s personal debt; he is not a “business” or a company.
Thanks

[YeLLowBoaT]

Those get out of debt places skrew your credit up more then bankrubcy.

[Boatcop]

Have him check the local Better Business Bureau. They will have info on legit companies.
What these companies do is negotiate with creditors to lower or eliminate interest rates. Usually on unsecured debt, such as credit cards. Auto financing and mortgages may also reduce or delay payments until things get better. But since these debts are secured, they may just repossess or forclose.
The way it works, is he would make one payment to the company, who would then pay his bills. They review his income and asset situation, and allow him to keep some of his income. Essentially giving him an allowance to meet basic living expenses and pay recurring essential bills. (Electric, water, etc.) They charge a monthly fee for this service.
There are some drawbacks, though. Cable or satellite? Forget it. Back to basic service. Cell phone? No way, unless it's vital for business. Boat? HAH! You got to be kidding.
A lot of times the debtor can do a lot of these things himself. call the CC companies, Finance Company, Mortgage Company, etc. and explain his situation. Repossessions, forclosures, etc are expensive, and most CC companies will work with him to make sure they get paid off.
His credit is probably already shot, so any dings they may put on it, won't hurt it anymore than it already is.
Keep in mind that NO ONE can legally erase his debt. Don't let him fall for the scammers who'll just take the money and run, leaving him in worse shape than he already is.

[HocusPocus]

i have never had to use one but just from what i have read, those debt relief place are not a good option. i remember reading a good article awhile back on them and i will try to look it up and post a link.

[Water Romper]

Those get out of debt places skrew your credit up more then bankrubcy.
Yeah...thats what I have heard. I told him to call the credit card companies and work out something between himself and them.
He was looking at me with the "fish eye" look, thinking I am going to bail him out...HELL NO...

[Water Romper]

Have him check the local Better Business Bureau. They will have info on legit companies.
What these companies do is negotiate with creditors to lower or eliminate interest rates. Usually on unsecured debt, such as credit cards. Auto financing and mortgages may also reduce or delay payments until things get better. But since these debts are secured, they may just repossess or forclose.
The way it works, is he would make one payment to the company, who would then pay his bills. They review his income and asset situation, and allow him to keep some of his income. Essentially giving him an allowance to meet basic living expenses and pay recurring essential bills. (Electric, water, etc.) They charge a monthly fee for this service.
There are some drawbacks, though. Cable or satellite? Forget it. Back to basic service. Cell phone? No way, unless it's vital for business. Boat? HAH! You got to be kidding.
A lot of times the debtor can do a lot of these things himself. call the CC companies, Finance Company, Mortgage Company, etc. and explain his situation. Repossessions, forclosures, etc are expensive, and most companies CC will work with him to make sure they get paid off.
His credit is probably already shot, so any dings they may put on it, won't hurt anymore than it already is.
Keep in mind that NO ONE can legally erase his debt. Don't let him fall for the scammers who'll just take the money and run, leaving him in worse shape than he already is.
Thanks for the advice...I will pass this along to him. Poor guy, he has really dug himself a hole

[SummerBreeze]

My brother in law is ass backwards financially and was asking me about debt relief services vs bankruptcy. :jawdrop: Since I have not had to use either of these services I am not qualified to give him a good answer.
I poked around the net and there are a million different companies tooting their own horn..
Anybody know anyone that has done this before? By the way, it’s personal debt; he is not a “business” or a company.
Thanks
Maybe you can sleep with his sister

[Deano]

I was just talking to a guy that went through this. His experience was to not use a consolidation company. He needs to call all the creditors himself. Tell them to close the accounts. Not to charge interest anymore, and work out a payment plan that he can afford. Either that or BK on em and they don't get anything.
Im not sure about a mortgage deal, other than a short sale if he is upside down.

[topless]

There are a very few that are reputable. 2 that come to mind are Consumer Credit Counseling on Orange county and Professional Credit counseling. NEVER do business with a company who claims to do credit repair. Here is a link that you can check the businesses. Hope it helps.
www.labbb.org

[Water Romper]

Maybe you can sleep with his sister
:D hehehehe:D

[HM]

I have a guy that specializes in this. He can consult you on whether to go bk or to settle outside of bk. His name is Ed Raucher of Malucci, Thomas and Brown. His number is 888-475-2610.

[All-Star]

New laws too... Bankruptcy is not that easy any more either. SO he might not even have that as an option.
Credit Counseling programs are worsse then a BK.
There is not easy way out. Has he heard of debt stacking or anything like that? You just have to attack one account at a time dude.
Sorry. But a ton of people are in the same boat.... no pun intended;)

[Wmc]

FYI: As a mortgage professional if a person uses credit counseling, when and if you go to get a loan, we will consider that the same as a BK. I don't recommend that service. If he is a homeowner he can possibly take out some cash to pay off his debt. If not call the credit companies himself and negotiate directly with them. Good Luck. :)

[HM]

I have a guy that specializes in this. He can consult you on whether to go bk or to settle outside of bk. His name is Ed Raucher of Malucci, Thomas and Brown. His number is 888-475-2610.
This guy is not a credit repair guy. He does bk's and debt negotiation. After he is all done, he has a guy that will do the challenge thing...which is hit and miss - but his guy is better than average.

[HM]

New laws too... Bankruptcy is not that easy any more either. SO he might not even have that as an option.
Credit Counseling programs are worsse then a BK.
There is not easy way out. Has he heard of debt stacking or anything like that? You just have to attack one account at a time dude.
Sorry. But a ton of people are in the same boat.... no pun intended;)
Don't believe what you heard on the radio about bk. The change in bk laws was exploited as a marketing effort by attorneys. It was just a tad toooooo easy before...people were exploiting the bk loop holes. There are still holes, just much smaller now.

[Water Romper]

Thanks for the info. I will pass it alongÂ…:)
Just as a FYI..He is a decent guy,he has a house and is NOT behind on the payments. Credit cards are the issue. NoÂ….. he and his wife do not go on vacations, do drugs, gamble or spend money foolishlyÂ…they donÂ’t even own a boat (otherwise I would understand) . They have had some bad luck (medical issues, a car wreck and back tax issues) all in one year and its hurt him pretty bad. He is maxed on the house as well. He employed so maybe he can work out some kind of deal with the CC companies.
As I listen to his plight, I wonder how far any of are from financial ruin….one or two bad “hiccups” in the game of finances and we could be screwed…:sqeyes:
Thank again gang for the input.

[YeLLowBoaT]

Thanks for the info. I will pass it alongÂ…:)
Just as a FYI..He is a decent guy,he has a house and is NOT behind on the payments. Credit cards are the issue. NoÂ….. he and his wife do not go on vacations, do drugs, gamble or spend money foolishlyÂ…they donÂ’t even own a boat (otherwise I would understand) . They have had some bad luck (medical issues, a car wreck and back tax issues) all in one year and its hurt him pretty bad. He is maxed on the house as well. He employed so maybe he can work out some kind of deal with the CC companies.
As I listen to his plight, I wonder how far any of are from financial ruin….one or two bad “hiccups” in the game of finances and we could be screwed…:sqeyes:
Thank again gang for the input.
most ppl I know are 1 month away from losing every thing...

[Baja Big Dog]

This is a great place to ask this question...notice the silence???? You know that alot of folks that post here know exactly how to handle this situation, you know who you are...the 32 ft boat the big truck (deisel of course), the Benz for the wife the Escolade to get to the store and back, two, maybe three houses, matching Rhino's all paid for with cash????????Yea right.
When is payday? Not the day, but the hour!!!
Was in back of the classic "wannabeaballer" at the Chevron in "Havi" last summer, guy with a 30 ft boat put in $100 bucks and went through 4 credit cards to pay for the gas, I was in tears, this guy was sweatin bullets, GF was waiting in the lifted F350 with her fake bolt on's, thinking all is well in money town, bet the boat is for sale somewhere as we read this, most likley by the BANK!!!
Come on guys, step up and tell this guy how to handle this!!

[C-2]

The changes to the BK code were made to curb people from walking away from debt. Most people go in looking for Chapter 7's - but cannot meet the new guidlines. If you work, there's a good chance you can't file a Chap 7 to discharge/eliminate the debt.
Most people are forced into 13's, which require repayment of the debt over 3-5 years. But considering most plans are 100% payback, and the other burdens of a 13, 80-90% of 13's are never discharged or completed, but rather dismissed, leaving you with the unpaid debt. This kind of paves the way for a Chap 7, but it's not an easy or fun process.
There used to be a great site named artofcredit.com, but the man got it shut down. Tell him to research the crap out of creditnet.com, and any other message boards. Some of the people who operated artofcredit are on some of the other boards, and have a wealth of info and past experience.
The truth is, he can also get a loan to consolidate. Granted it might not be under the best terms or even to his liking, but it's still cheaper than any BK, which WILL haunt him for a very long time. Don't listen to all the mainstream lenders, there are specialized lenders who will do the loan (and it will cost him about $6-$12K in loan broker fees). Sounds harsh, but again cheaper in the long run.

[skygod73]

This is a great place to ask this question...notice the silence???? You know that alot of folks that post here know exactly how to handle this situation, you know who you are...the 32 ft boat the big truck (deisel of course), the Benz for the wife the Escolade to get to the store and back, two, maybe three houses, matching Rhino's all paid for with cash????????Yea right.
When is payday? Not the day, but the hour!!!
Was in back of the classic "wannabeaballer" at the Chevron in "Havi" last summer, guy with a 30 ft boat put in $100 bucks and went through 4 credit cards to pay for the gas, I was in tears, this guy was sweatin bullets, GF was waiting in the lifted F350 with her fake bolt on's, thinking all is well in money town, bet the boat is for sale somewhere as we read this, most likley by the BANK!!!
Come on guys, step up and tell this guy how to handle this!!
You read my mind!

[a catered life]

Have him check the local Better Business Bureau. They will have info on legit companies.
What these companies do is negotiate with creditors to lower or eliminate interest rates. Usually on unsecured debt, such as credit cards. Auto financing and mortgages may also reduce or delay payments until things get better. But since these debts are secured, they may just repossess or forclose.
The way it works, is he would make one payment to the company, who would then pay his bills. They review his income and asset situation, and allow him to keep some of his income. Essentially giving him an allowance to meet basic living expenses and pay recurring essential bills. (Electric, water, etc.) They charge a monthly fee for this service.
There are some drawbacks, though. Cable or satellite? Forget it. Back to basic service. Cell phone? No way, unless it's vital for business. Boat? HAH! You got to be kidding.
A lot of times the debtor can do a lot of these things himself. call the CC companies, Finance Company, Mortgage Company, etc. and explain his situation. Repossessions, forclosures, etc are expensive, and most CC companies will work with him to make sure they get paid off.
His credit is probably already shot, so any dings they may put on it, won't hurt it anymore than it already is.
Keep in mind that NO ONE can legally erase his debt. Don't let him fall for the scammers who'll just take the money and run, leaving him in worse shape than he already is.
yea what he said:D
and remember with those debt relief companies all they do is conbine all his payments and get the instrest dropped and now he'll make one payment but he will still have to do the two things that he cant do now
1. pay on time:eek:
2. don't make more debt:eek:
these maybe the two most important things to paying down debt:idea:

[DCBDaytona]

This is a great place to ask this question...notice the silence???? You know that alot of folks that post here know exactly how to handle this situation, you know who you are...the 32 ft boat the big truck (deisel of course), the Benz for the wife the Escolade to get to the store and back, two, maybe three houses, matching Rhino's all paid for with cash????????Yea right.
When is payday? Not the day, but the hour!!!
Was in back of the classic "wannabeaballer" at the Chevron in "Havi" last summer, guy with a 30 ft boat put in $100 bucks and went through 4 credit cards to pay for the gas, I was in tears, this guy was sweatin bullets, GF was waiting in the lifted F350 with her fake bolt on's, thinking all is well in money town, bet the boat is for sale somewhere as we read this, most likley by the BANK!!!
Come on guys, step up and tell this guy how to handle this!!
You hit the nail on the head....;)

[ChumpChange]

most ppl I know are 1 month away from losing every thing...
It's amazing. I come across some of these people every once in a while as they try and buy commercial property as an investment. Their house is 100% financed with an $6,000/mo. payment. The wife drives a Land Rover(financed) while the husband something a little less(stil financed).
With the income they each make, if one of them lost a job, they would be short on cash the first month. They wouldn't be able to get out of their house(can't pay the fees) and they'd be done.
Just because you live in a million dollar house doesn't make you rich. If you go broke after one month of losing a job......YOU'RE POOR!!!

[Baja Big Dog]

It's amazing. I come across some of these people every once in a while as they try and buy commercial property as an investment. Their house is 100% financed with an $6,000/mo. payment. The wife drives a Land Rover(financed) while the husband something a little less(stil financed).
With the income they each make, if one of them lost a job, they would be short on cash the first month. They wouldn't be able to get out of their house(can't pay the fees) and they'd be done.
Just because you live in a million dollar house doesn't make you rich. If you go broke after one month of losing a job......YOU'RE POOR!!!
Not too many people argueing with you (us)!!!:idea:

[ratso]

most ppl I know are 1 month away from losing every thing...
I'm at least two...:D

[whiteworks]

one of my clients own a collection agency, he runs across people all the time that are in situations like this. he is one hell of a negotiator and it really is quite suprising what deals can be made with creditors. if this is of interest I can put you in contact.

[catman-do]

FYI: As a mortgage professional if a person uses credit counseling, when and if you go to get a loan, we will consider that the same as a BK. I don't recommend that service. If he is a homeowner he can possibly take out some cash to pay off his debt. If not call the credit companies himself and negotiate directly with them. Good Luck. :)
I work for a company that goes along the same guidelines as WMC, and we also would consider this a bk onec we see CCC showing on credit. I wouldnt go that route. Many creditors will not settle with an individual outside. Plus by the time you get CCC involved most of the consumer debts are collections anyways, so now your screwing yourself twice. If they've gone to collection and its old then leave it.

[Water Romper]

After reading the posts here and seeking “legal council” from attorney friends, here will be the “plan of attack” and the direction he will go….
Brother in law assumes all responsibility. He is not blaming anyone, no one ripped him off, stole his identity, wife did not go on some psycho spending frenzy, as a matter of fact this “hole” took several years to dig…So over dinner, drinks and spilling his guts, here’s the deal….
He is going to contact his creditors (4 credit card companies,total of $50,000k in debt:cry: ) and ask that he pay only $xx.xx a month (TBD at time of the call) for the next 6 months. He will make the payments EVERY MONTH (but not the minimum payment, it’s to high) and with the extra money left over, pay off the government, doctors and other bills that require to be“paid in full” he will continue to make the house payments as per the mortgage agreement. Once the odds and ends are cleared up, he will start paying down the cards, highest interest first.
I told him to get this in writing and DO WHAT HE PROMISIS to the CC companies, donÂ’t screw the CC companies on this, from what I understand, they are used to this and will work with a person once.
I showed him this thread and he thought it was amazing how strangers stepped up and offered what appears to be honest advice and were helpful to someone they don’t even know…I told him “That’s what boaters do”
(he then proceeded to look at the “cutesiest girls thread”…hey, he’s broke, not dead):D
He is calling all the CC companies today.

[Water Romper]

After reading the posts here and seeking “legal council� from attorney friends, here will be the “plan of attack� and the direction he will go….
Brother in law assumes all responsibility. He is not blaming anyone, no one ripped him off, stole his identity, wife did not go on some psycho spending frenzy, as a matter of fact this “hole� took several years to dig…So over dinner, drinks and spilling his guts, here’s the deal….
He is going to contact his creditors (4 credit card companies,total of $50,000k in debt:cry: ) and ask that he pay only $xx.xx a month (TBD at time of the call) for the next 6 months. He will make the payments EVERY MONTH (but not the minimum payment, it’s to high) and with the extra money left over, pay off the government, doctors and other bills that require to be“paid in full� he will continue to make the house payments as per the mortgage agreement. Once the odds and ends are cleared up, he will start paying down the cards, highest interest first.
I told him to get this in writing and DO WHAT HE PROMISIS to the CC companies, don’t screw the CC companies on this, from what I understand, they are used to this and will work with a person once.
I showed him this thread and he thought it was amazing how strangers stepped up and offered what appears to be honest advice and were helpful to someone they don’t even know…I told him “That’s what boaters do�
(he then proceeded to look at the “favorite babes thread�…hey, he’s broke, not dead):D
He is calling all the CC companies today.

[gqchris]

This is a great place to ask this question...notice the silence???? You know that alot of folks that post here know exactly how to handle this situation, you know who you are...the 32 ft boat the big truck (deisel of course), the Benz for the wife the Escolade to get to the store and back, two, maybe three houses, matching Rhino's all paid for with cash????????Yea right.
When is payday? Not the day, but the hour!!!
Was in back of the classic "wannabeaballer" at the Chevron in "Havi" last summer, guy with a 30 ft boat put in $100 bucks and went through 4 credit cards to pay for the gas, I was in tears, this guy was sweatin bullets, GF was waiting in the lifted F350 with her fake bolt on's, thinking all is well in money town, bet the boat is for sale somewhere as we read this, most likley by the BANK!!!
Come on guys, step up and tell this guy how to handle this!!
THis is so dead on! My group of friends have a term for this exact behavior , we call it "Chasing Paychecks!"

[C-2]

After reading the posts here and seeking “legal council” from attorney friends, here will be the “plan of attack” and the direction he will go….
Brother in law assumes all responsibility. He is not blaming anyone, no one ripped him off, stole his identity, wife did not go on some psycho spending frenzy, as a matter of fact this “hole” took several years to dig…So over dinner, drinks and spilling his guts, here’s the deal….
He is going to contact his creditors (4 credit card companies,total of $50,000k in debt:cry: ) and ask that he pay only $xx.xx a month (TBD at time of the call) for the next 6 months. He will make the payments EVERY MONTH (but not the minimum payment, it’s to high) and with the extra money left over, pay off the government, doctors and other bills that require to be“paid in full” he will continue to make the house payments as per the mortgage agreement. Once the odds and ends are cleared up, he will start paying down the cards, highest interest first.
I told him to get this in writing and DO WHAT HE PROMISIS to the CC companies, donÂ’t screw the CC companies on this, from what I understand, they are used to this and will work with a person once.
I showed him this thread and he thought it was amazing how strangers stepped up and offered what appears to be honest advice and were helpful to someone they don’t even know…I told him “That’s what boaters do”
(he then proceeded to look at the “favorite babes thread”…hey, he’s broke, not dead):D
He is calling all the CC companies today.
Also tell him, as long as he remains in contact with the IRS, AND HAS A PLAN for repayment within the course of five years, they will work with him. Even if he has not filed returns for a couple of years, he can file them, make a few payment in good faith and after the returns have posted, get on a payment plan. He also need to keep what is owed to them under $25K, otherwise they have to statutory lien him (tax lien). Whatever he does, just don't avoid them, they really try to work things out before they get all Willie on ya.
The state - they are ball busters, but usually liabilities are lower and more manageable. Use the same strategy cuz as others have pointed out, the state tends to levy and garnish first, then ask questions later. Just tell them they are first in line :)
Medical bills - do whatever he can to make little payments, keep them with the medical office. If they turn them over to a collection agency or attorney, they are nornmally really aggressive. Escpecially if it goes ovber to a junk debt buyer, so tell him not to avoid them, and pay a little, make sure it stays with the medical office if possible.
If he get's sued by anybody, post again :)